Today (April 8), after the government revised the natural gas pricing formula, the cost of compressed natural gas (CNG) and cooking gas piped to homes in the national capital was reduced by up to Rs 6, the first decrease in price in two years.
According to a tweet from Indraprastha Gas Ltd (IGL), the company that sells CNG and piped cooking gas in the city, CNG in Delhi would now cost Rs 73.59 per kilogramme, down from Rs 79.56.
IGL reports that the price of gas that is piped into residential kitchens, known as piped natural gas (PNG), has decreased to Rs 48.59 per standard cubic metre in Delhi from Rs 53.59 per scm.
The price decrease comes after a two-year price hike of more than 80%. There were 15 price increases for CNG between April 2021 and December 2022. Data show that CNG prices have grown by Rs 36.16 per kilogramme (or 83%) since April 2021.
CNG prices were last hiked on December 17, 2022.
PNG rates:
Similarly, between August 7, 2021, and October 8, 2022, PNG rates increased by a factor of ten. Overall, prices increased by Rs 24.09 per square metre, or 81%. Rates increased as a result of an increase in energy price internationally brought on by geopolitical unrest. Without the government’s Thursday evening adjustment to the price of natural gas, the input raw material used to create CNG and PNG, prices would have increased considerably more.
Hence, the locally produced fuel is now benchmarked to the cost of imported crude oil subject to a cap of $ 6.5 per million British thermal units rather than using prices in four international gas hubs.
With the oil ministry setting a petrol price of USD 7.92 per mmBtu for the remainder of the month, the pricing formula went into effect on Saturday. Yet, because of the cap, city petrol dealers like IGL will only have to pay USD 6.5 for the gas. This USD 6.5 per mmBtu cap price is lower than the previous USD 8.57 rates.
IGL claimed in a tweet that its retail CNG and PNG pricing in the nation’s capital “are among the lowest in the country.”
“The revised retail price of PNG in Delhi would be Rs 48.59 per scm wef 9th April 2023,” it said. “The revised retail price of PNG in Noida, Greater Noida & Ghaziabad would be Rs 48.46 per scm wef 9th April 2023.”
The updated retail price for CNG would be Rs 73.59 per kg in Delhi, Rs 77.20 in Noida, Greater Noida, and Ghaziabad, and Rs 82.62 in Gurugram.
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